BTC technicals weaken again, with the trend likely testing $91,000

Bitcoin once again experienced volatile fluctuations at the beginning of this week. Last week, BTC challenged $98,000, and the market expected a subsequent test of $93,000. This was confirmed on Monday morning, but this time the decline was even more severe—BTC plummeted from $95,000 straight down to a low of $91,000, then briefly stabilized at the $93,000 level. Meanwhile, the altcoin market faced even more intense shocks, with over $860 million in positions forcibly liquidated, of which $780 million were long positions, fully reflecting the market’s intense panic sentiment.

Short-term trend line broken, hundred-billion position liquidated

On the technical side, the daily chart clearly shows that BTC’s price has once again broken below the short-term upward trend line, indicating that the trend may further extend downward. The large-scale liquidation of positions has, in turn, intensified the downward momentum, creating a vicious cycle—price declines trigger stop-loss orders, which then push prices even lower. According to data statistics, the recent decline has dealt a particularly heavy blow to longs, with a large number of leveraged longs forced to close, further deepening the market’s selling pressure.

Risk aversion intensifies, geopolitical issues become the main trigger

The market’s shift towards risk aversion has a clear catalyst. Gold prices hit a new all-time high, breaking through $4,600 per ounce, perfectly illustrating this risk-averse wave. The main reason behind this risk aversion is Trump’s announcement over the weekend of a 10% tariff increase on Denmark and seven other European countries. The escalation of trade tensions and rising geopolitical risks have led investors to sell risk assets and turn to traditional safe-haven tools like gold. Cryptocurrencies naturally became among the first assets to be sold off. Additionally, with the US holiday on Monday, decreased market liquidity further amplified the decline.

This week is risk-heavy, BTC may face further pressure

Looking ahead to this week, geopolitical risk events are densely packed, including Trump’s tariff negotiations with Europe, developments in Iran, the Bank of Japan’s interest rate decision, and the dissolution of Japan’s House of Representatives. These uncertainties are likely to trigger market panic, causing investors to avoid risk. It is expected that the cryptocurrency market will continue to fluctuate at low levels this week. Although there may be opportunities for a rebound midweek, the release of Japan’s interest rate decision on Friday and the potential resurgence of risk aversion over the weekend could cause BTC to test below $91,000 again, which may drag down the entire crypto market. Investors should be fully prepared for a downward short-term trend and closely monitor the latest developments in geopolitical events.